Multiple Choice
Which one of the following statements is correct with respect to the liability of partners?
A) When a partner enters into a partnership arrangement, he can only lose what he has invested in that partnership.
B) If a third party is injured because of an activity carried on by the partnership, that third party can only go after the personal assets of a partner if the assets of the partnership are not enough to provide compensation and the damage was actually caused by the conduct of that partner.
C) A general partner is responsible, independent of what she has invested, for any losses caused to outsiders through the partnership business if the assets of the partnership are not enough to cover the claim.
D) If there are three equal partners in a partnership, an injured third party can collect only one third of the claim from any one partner.
E) A partner can protect himself from any liability beyond his investment if one of the other partners specifically agrees in the partnership agreement to be responsible for all such liability.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: The ratification of a contract by the
Q20: Explain how the principle of fiduciary duty
Q31: Partners are vicariously liable for the wrongful
Q33: An agent need not disclose the fact
Q35: Chan sold a business to Scott and
Q71: The only situation where an agent can
Q191: Identify the true statement concerning the law
Q192: Which of the following is correct with
Q201: Explain when a group of people would
Q205: How is an agency relationship created?